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276009 WHITE - CITY CLERK PINK ' FINANCE .ay'( !'i!�(1 . . CANARY - DEPARTMENT COUIICII j�e ���y BLUE - MAYOR GITY OF SAINT PAUL File NO. ��•����j�� il Resolution Presented By Referred To Committee: Date Out of Committee By Date WHEREAS: 1 . On November 26, 1980, the Port Authority of the City of Saint Paul adopted Resolution No. 1749 giving preliminary approval to the issuance of revenue bonds in the amount of approximately $51 ,000,000 to finance the construction of 950 housing units to be located in St. Paul Energy Park by the Wilder Foundation. 2. Laws of Minnesota, Chapter 234, provides that any issue of revenue bonds authorized by the Port Authority of the City of Saint Paul , shall be issued only with the consent of the City Council of the City of Saint Paul , by resolution adopted in accordance with law; 3. The Port Authority of the City of Saint Paul has requested that the City Council give its requisite consent pursuant to said law to facilitate the issuance of said revenue bonds by the Port Authority of the City of Saint Paul , subject to final approval of the details of said issue by the Port Authority of the City of Saint Paul . RESOLVED, by the City Council of the City of Saint Paul , that in accordance with Laws of Minnesota 1976, Chapter 234, the City Council hereby consents to the issuance of the aforesaid revenue bonds for the purposes described in the aforesaid Port Authority Resolution No. 1749, the exact details of which, including, but not limited to, provisions relating to maturities, interest rates, discount, redemption, and for the issuance of additional bonds are to be determined by the Port Authority, pursuant to resolution adopted by the Port Authority, and the City Council hereby authorizes the issuance of any additional bonds (including refunding bonds) by the Port Authority, found by the Port Authority to be necessary for carrying out the purposes for which the aforesaid bonds are issued. COUNCILMEN Yeas Nays Requestgd by Department of: t Hunt � Q. �� In Favor Maddox McMahon B snoWaiter __ Against Y Tedesco Wilson ��E 4 �� Form Approve y City Attorne Adopted by Council: Date — � Certified Y•s-ed by Council Secretar BY � B� Approved vor: Date �� 5 �9S Approved by Ma or for Submission to Council By ����2Gj�Lt-d v�'L-�' _ By � �� D E C 1 3 i980 . . ,f� , � - -�- .� � � .. � Resolution No. /7y9 � A ���VV� RESOLUTION OF THE PORT AUTHORITY OF THE CITY OF SAINT PAUL WHEREAS, the purpose of Chapter 474, Minnesota Statutes, known as the Minnesota t�iunicipal Industrial Develop- ment Act (hereinafter called "Act") as found and determined by the legislature is to promote the Helfare of the state by the active attraction and encouragement and development of economi- cally sound ind�stry and commerce to prevent so far as possible the emergence of blighted and marginal lands and areas of chronic aner�ploynent and to aid in the development of existing areas of bliyht, marginal land and persistent unemployment; and WHEREAS, factors necessitating the active promotion and developnent of economically so�nd industry and corunerce are the increasing concentration of population in the metropolitan areas and the rapidly rising increase in the amount and cost of � governmental services required to meet the needs of the increased population and the need for development of land use which will provide an adequate tax base to finance these increased costs and access to employraent opportunities for such - __ population; and WHEREAS, The Port Authority of the City of Saint Paul (the "Authority") has received from the Amherst H. Wilder Foundation (hereinafter referred to as "Company") a request that the Authority issue its revenue bonds to finance the acguisition, installation and construction of a multi-family housing developr�ent in Saint Paul Energy Park, which developr�ent Hill contain both rental and owner occupied housing � (hereinafter collectively called the "Project") in the City of St. Paul, all as is more fully described in the staff report on f ile; and WHEREAS, Chapter 46�C, Minnesota Statutes provides that the Port Authority may issue revenue bonds of the Port Authority to finance multi-family housing developments which are part of a housing program that has been adopted after public hearing and approved by the i�innesota Housing Finance Agency; , , , ,WHEREAS, the City of Sa.irit Paul, after a public' • • . hearing on the Housing Project conducted on November 13, 1980, � �approved the Housing Project and the Financing thereof by the Port Authority; �"��+���� WHEREAS, the Minnesota Housing Finance Agency, af ter � its meeting of November 25, 1980, approved the Housing Project, as required by the Act; � • WHEREAS, the Authority desires to facilitate the selective development of the community, to retain and improve its tax base and to help it provide the range of services and � employment opportunities required by its population, and said Project will assist the City in achieving that objective. Said Project will help to increase the assessed valuation of the . City and help maintain a positive relationship between assessed valuation and debt and enhance the image and reputation of the C i ty; WHEREAS, the Project to be financed by revenue bonds will result in substantial employr:ient opportunities in the Project; WHEREAS, the Authority has been advised by repre- sentatives of the Company that conventional, commercial financing to pay the capital cost of the Project is available only on a limited basis and at such high costs of borrowing . that the economic feasibility of operating the Project would be significantly reduced, but the Company has also advised this Authority that ��ith the aid of revenue bond financing, and its resulting low borrowing cost, the Project is economically more feasible; -�- WHEREAS, Miller & Schroeder Municipals, Inc. (the "Underwriter") has raade a proposal in an agreeraent (the "Underwriting Agreement" ) relating to the purchase of the revenue bonds to be issued to finance the Project; WHEREAS, the Authority, pursuant to i�iinnesota � Statutes, Section 474.01, Subdivision 7b did publish a notice, . a copy of which with proof of publication is on file in the office of the Authority, of a public hearing on the proposal of the Company that the Authority finance the Project hereinbefore _ . described by the issuance of its industrial revenue bonds; and WHEREAS, the Authority did conduct a public hearing pursuant to said notice, at which hearing the recommendations contained in the Authority' s staff inemorandum to the Commissioners were reviewed, and all persons who appeared at the hearing caere yiven an opportunity to express their vieWs with respect to the proposal. - , • � ' , NOW, THEREFORE, BE IT RESOLVED by the Commissioners ,������ of the Port Authority of the City of Saint Paul� Minnesota as follows: � 1. On the basis of information available to the Authority it appears, and the Authority hereby finds, that said Project constitutes a multi-family housing development within the meaning of Chapter 462C of the Minnesota Statutes; that the Project furthers the purposes stated in Section 474.01 of the Act, that the availability of the financing under the Act and willingness of the Authority to furnish such financing will be a substantial inducement to the Company to undertake the Project, and that the effect of the Project, if undertaken, will be to encourage the development of economically sound , industry and commerce and assist in the prevention of the emergence of blighted and marginal land, and will help to prevent chronic unemployment, and will help the City to retain and improve its tax base and provide the range of services and employr.ient opportunities required by its population, and will help to prevent the movement of talented and educated persons out of the state and to areas within the state where their services may not be as effectively used and will result in more intensive development and use of land within the City and will eventually result in an increase in the City's tax base; and that it is in the best interests of the port district and the people of the. City of Saint Paul and in furtherance of the general plan of development to assist the Company in financing the Project. 2. Subject to the mutual agreement of the -- Authority, the Conpany and the purchase.r of the revenue bonds as to the details of the lease or other revenue agreement as defined in the Act, and other docur.ients necessary to evidence and effect the financing of the Project and the issuance of the revenue bonds, the Project is hereby approved and authorized and the issuance of revenue bonds of the Authority (which may be in the form of a single note) in an amount not to exceed approximately $51,000,000 (other than such additional revenue bonds as are needed to complete the Project) is authorized to finance the costs of the Project and the recommendations of the Authority' s staff, as set forth in the staff inemorandum to the Commissioners which was presented to the Commissioners, are incorporated herein by reference and approved. � 3. In accordance with Subdivision 7a of Section 474.01, T�innesota Statutes, the Executive Vice-President of the AUTHURITY is hereby authorized and directed to submit the proposal for the above described Project to the Commissioner of Securities, requesting his approval, and other officers, employees and agents of the AUTHORITY are hereby authorized to provide the Commissioner with such preliminary information as he may require. , 4: � G?y � + ' ' � � ��b��l� . � , � � 4. Tliere has heretofore been filed Nith the Authority a form of Preliminary Agreement between the Authority and Company, relating to the proposed construction and financing of the Praject and a form of the Undereariting � Agreement. . The form of said Agreements have been examined by ' the Commissioners. It is the purpose of said Agreements to evidence the commitment of the parties and their intentions with respect to the proposed Project in order that the Company may proceed without delay with the commencement of the acquisition, installation and construction of the Project with the assurance that there has been sufficient "official action" under Section 103(b) of the Internal Revenue Code of 1954, as amended, to allow for the issuance of industrial revenue bonds ( including, if deemed appropriate, any interim note or notes to ; provide temporary financing thereof) to finance the entire cost . of the Project upon agreement being reached as to the ultimate details of the Project and its financing. Said Agreements are hereby approvec], and the President and Secretary of the Authority are hereby authorized and directed to execute said Agreements. 5. Upon execution of the Preliminary Agreement by the Company, the staff of the Authority are authorized and directed to continue negotiations with the Company so as to resolve the remaining issues necessary to the preparation of the lease or other documents necessary to the adoption by the Authority af its final bond resolution and the issuance and � delivery of the revenue bonds; provided that the President (or Vice-President if the President is absent) and the Secretary (or Assistant Secretary if the Secretary is absent) of the � Authority, or if either of such officers (and his alternative� are absent, the Treasurer of the Authority in lieu of such absent officers, are hereby 'authorized in accordarice with the provisions of t�tinnesota Statutes, Section 475.06, Subdivision 1, to accept a final offer of the Underwriters made by the Underwriters to purchase said bonds and to execute an underWriting agreement setting forth such offer on behalf of the Authority. Such acceptance shall bind the Underwriters to . said offer but shall be subject to approval and ratification by the Port Authority in a formal supplemental bond resolution to be adopted prior to the delivery of said revenue bonds. 6. The revenue bonds ( including any interim note. or notes) and interest thereon shall not constitute an . indek�tedness of the Authority or the City of Saint Paul within the meaning of any constitutional or statutory limitation and shall not constitute or give rise to a pecuniary liability of the Authority or the City or a charge against their yeneral credit or taxiny po�aers and neither the full faith and credit nor the taxing powers of the Authority or the City is pledged for the payment of the bonds (and interim note or, notes) or interest thereon. . ` . � � .� ' ' 7. In order to facilitate completion of the revenue bond financing herein contemplated, the City Council is hereby requested to consent, pursuant to Laws of Minnesota, 1976, Chapter 234, to the issuance of the revenue bonds ( including any interim note or notes) herein contemplated and any additional bonds which the Authority may prior to issuance or from time to time thereafter deem necessary to complete the Project or to refund such revenue bonds; and for such purpose � the Executive Vice President of the Authority is hereby authorized and directed to forward to the City Council copies of this resolution and said Preliminary Agreement and any additional available information the City Council may request. 8. The actions of the Executive Vice-President of the Authority in causing public notice of the public hearing and in descri}�iny the general nature of the Project and estimatiny the principal amount of bonds to be issued to finance the Project and in prepariny a draft of the proposed application to the Commissioner of Securities, State of Minnesota, for approval of the Project, which has been available for inspection by the public at the office of the Authority from and after the publication of notice of the hearing, are in all respects ratified and confirmed. Adopted NovemUer 26, 1980 �% /� � ;` � i� � ���:� � . l' , � Attest � -! - � �— res id t � T ort �uthority of the City of Saint Paul Secretary , , `�' . , . . . . . . . .. � . � . . :�' . : � ��. '�-- `• � , - • OM �1 : 12/I 5?5 � � � , Rev.: 9/8/?6 . E�(PLANATION OF ADMINISTRATIVE ORDERS, ��� - RESOLUTIQNS� AND ORDINAMCES , ,- I)ate: November 28, 198� T0: MA GEORGE LATIMER fR: � E. . au � . �: WILDf Ot1NDATION �51 ,00�,000 HOUSING REYEPlUE BONQ ISSUE � ST. PAUL ENERGY PARK ; ACTION REQUESTED: In accordance with the taws of Minnesota, Chapter 234, it is reguested that the City Cauncit , by Resolution, a draft copy of which is attached her�to, apprc�ve the_ issuance of revenue bonds �tn the an�unt of approximately $51 ,OOR,Qt� to finance the construction c�f 9�0 housing unfits to be located in St. Paul Energy Park by the Wilder Foundation. ; . `� � PURPOSE AND RATIQNALE FOR THIS ACTIOf�: � Tfie purpose of the rev�nue bond issu� is to �Finance the corrstruc�ian �f 95� t�usi'ng units to be located in St. Raul Energy Park by th� Wilder Foundation. There will be 250 unfts on the Midway Stadium site and 700 units on the Trailer on Flat Car (TOFC) site. Under the - Negotiated Investment�Strategy agreement and the agreementcs with the n��ghbmr�hc�od counci'Is, it fs requfred that at least 20� of the units be Section 8 or equfvaler�t a�tl 50� of the housing on the TOFC site be owner-occupied. P►. condition of the agreemertt fs the rec}air�t that bonds be sold in order to conform to the conditions of the 1Jrban �evelapment Action Grant by Dec�nber 3� , 1980, unless an extension is agreed to b�y all parties: ATTACHMENTS: Staff Memorandum Draft City Council Resolution Por� Authority Resolution No. 1749 P � RT . � . � AU '� HORITY ������ OF THE CITY OF ST. PAUL � Memorandum TO: Board of Commissioners DATE November 25, 1980 Meeting November 26, 1980 FROM: E. A. SUBJECT: WILDER FOUNDATION PUBLIC HEARING - PRELIMINARY AND UNDERWRITING AGREEMENT SALE OF BONDS - HOUSING - $51 ,000,000 REVENUE BOND ISSUE - ST. PAUL ENERGY PARK RESOLUTION N0. 1749 PUBLIC HEARING - PRELIMINARY AND UNDERWRITING AGREEMENT SALE OF BONDS - COMMUNITY FACILITIES - $12,000,000 REVENUE BOND ISSUE - COMMUNITY FACILITIES RESOLUTION N0. 1751 PUBLIC SALE HEARING - SALE OF LAND RESOLUTION N0. 1750 PUBLIC SALE HEARING - SALE OF LAND RESOLUTION N0. 1752 RESOLUTION N0. 1749 - PRELIMINARY AGREEMENT - HOUSING � The housing element in Energy Park will be comprised of 250 units on the Midway Stadium site and 700 units on the Trailer on Flat Car (TOFC) site. The Midway Stadium housing wil� be all rental , whereas, the balance of the housing will be rental and owner-occupied. Under the Negotiated Investment Strategy agreement and the agreements with the neighborhood councils, it is required that at least 20% of the units be Section 8 or equivalent and 40% of the housing on the TOFC site be owner-occupied. In development of the Energy Park Plan the concept was not only to create a national demonstration project in energy conservation but to create a development that combined a working and living environment. The Wilder plans and the energy spine that connects the related facilities and the covenants and requirements of the Master Plan will accomplish this end. Staff recommends approval of Resolution No. 1749 relating to the preliminary and underwriting agreement. RESOLUTION N0. 1751 - PRELIMINARY AGREEMENT - COMMUNITY FACILITIES Authorization to issue housing bonds in the state of Minnesota is based on per capita ratio. St. Paul 's total limit is $180,000,000 in bonds. In order to keep the total as low as possible to allow bonding for other housing projects, it is proposed that $12,000,000 in industrial revenue bonds be issued for the Wilder project. Such funds to be utilized for the Mealth club, recreational facilities, parking, landscaping, and ponding. This issue would be $12,000,000 and would involve expenditures both on the Midway Stadium site and on the TOFC site. . � . � . � �� � 6 q Board of Commissioners November 25, 1980 -� Page -2- The preliminary agreement will provide these bonds can either be issued on an interim note or under Port Authority 876 Resolution with appropriate guarantees from Wilder. It is staff's recorr�nendation that Resolution No. 1751 be approved. In this recommendation it should be pointed out that the two bond issues above ($51 ,000,000 and $12,000,000--total $63,000,000) are not separated by site and should be applied jointly to the total Wilder housing development in Energy Park. UNDERWRITING The 10-member underwriting syndication managed by Miller & Schroeder has agreed to privately place the interim financing and to underwrite the $12,000,000 ancillary facilities issue if Wilder opts to take the route utilizing 876. In order to privately place this volume of bonds, it will be necessary for Wilder to provide security in the form of a letter of credit or similar security. Fiscal and administrative fees for the first four years will be $244,000, or $61 ,000 per annum on the privately placed bonds, and 1/lOth of 1% of the outstanding balance for that portion that is financed either long-term or .� Resolution 876. RESOLUTION N0. 1750 - SALE OF LAND Seven hundred housing units are proposed for the Energy Park Trailer on • Flat Car (TOFC) site in the centrum area: At $1 ,312 per unit this represents a land price of $918,400. Staff recommends approval of the sale or lease with option to purchase this land. If Wilder elects to lease, the interest charged against the $918,400 would be equal to 10% per annum. Staff recornrnends adoption of Resolution N0. 1750. Staff recorrunends approval of the sale of land and Resolution No. 1750, conditioned on the ultimate acqui�sition of that property not now under the control of the Port Authority. RESOLUTION N0. 1752 - SALE OF LAND Two hundred fifty housing units . are proposed for the Energy Park Midway Stadium site in the centrum area. At $1 ,312 per unit this represents a land price of $328,000. Staff recommends approval of the sale or lease with option to purchase this land. If Wilder elects to lease, the interest charged against the $328,000 wauld be equal to 10% per annum. Staff recommends adoption of Resolution No. 1752.